Management Information
Systems
CS208
Information System Overview

An information system is a collection of
people, procedures, software, hardware, and
data


Having sufficient information is crucial to an
organization’s success
Computers can collect information and then
use that information to help people make
decisions
Management Levels
Top-level managers - responsible for strategic
planning -- need highly summarized information
Mid-level managers - responsible for
tactical planning -- need partially
summarized information
Supervisors - responsible for operational
matters -- need detailed day-to-day
information
Information Flow by
Management Level


Information needs are based on the
level of management
Top level management



Strategic: future-oriented
Information summaries from both internal
and external sources
Flow is up and from outside
Information Flow by
Management Level

Middle management




Tactical: Historical
Summarized weekly or monthly information from
internal sources
Flow is horizontal and vertical across functions
Supervisors

Operational: day-to-day

Detailed information from internal sources

Information flow is primarily vertical
Computer-Based
Information Systems

There are four kinds of computer-based
information systems:

Transaction Processing Systems

Management Information Systems

Decision Support Systems

Executive Information Systems
Transaction Processing System
(TPS)



Performs routine transactions necessary to
conduct business.
Records day-to-day transactions (operations)
in a database
Maintains foundational data for the other
information systems
File and Methods used in
Transaction Processing

Files Used:



Master File – Permanent data records
Transaction File – Holding file that contains
transactions (additions, deletions, and revisions)
to be applied to the master file.
Methods Used:


Batch Processing – Transactions are collected
over time and then processed all at once, as a
“batch” to update the master file.
Online (Real-time) Processing – Each
transactions is used to update the master file
immediately.
Management Information
Systems (MIS)




Collects and analyzes data from all departments.
Produces standardized reports in summarized,
structured form
Designed to provide an organization's middle
management with up-to-date information (such
as financial reports, inventory, etc.) at any time.
Unlike transaction processing systems, which
create databases, the MIS uses databases

DBMS is required to integrate data across
functional areas
MIS Common Report
Categories



Periodic - regular intervals, pre-determined
format, consistent content
Exception - highlight unusual events
Demand - as opposed to periodic, only upon
request
Decision Support System
(DSS)




Helps provide answers to unexpected, nonrecurring problems
Produces summaries of large amounts of data,
filtered and synthesized to support strategic nonroutine, decision-making
Combines data from TPS with analytical
models or data analysis tools
Uses communications technologies, data,
documents, knowledge and/or models to
complete decision process tasks.
Sample
DSS Analyses

Sensitivity Analysis


What-if Analysis


Study of effect that changes in one or more
parts of a model have on other parts of the
model
Checks impact of a change in the assumptions or
other input data on the proposed solution
Goal-seeking Analysis

Finds the value of the inputs necessary to
achieve a desired level of output
Executive Information
System (EIS)



A special type of DSS that presents data so that it is
easy to use by top executives without extensive
training.
Provides corporate information, such as financial
condition and market share, usually presented
graphically so executives retrieve information by
pointing to objects on the screen.
Has drill-down capability and access to key external
data.
Executive Information
System (EIS), continued




Information is presented in a very aggregate form
so executives can quickly scan it for trends and
anomalies
Addresses unstructured decision making through
advanced graphics and communications.
Sourced both internally from TPS and MIS and
from external sources
Gives senior management a broad company view,
assists with strategic planning
Information Systems Summary
TPS
Repetetive
Linear Logic
Regular Reports
No Decision Support
MIS
DSS
EIS
Specialized Heuristics
Complicated Logic
No Regular Reports
Supports Decision Making